eBook Calculator Problem 6-36 (LO. 9) During the current year, Gene, a CPA, performs services as follows: 1,800 hours in his tax practice and 50 hours in an apartment leasing operation in which he has a 15% interest. Because of his oversight duties, Gene is considered to be an active participant. He expects that his share of the loss realized from the apartment leasing operation will be $30,000 and that his tax practice will show a profit of approximately $80,000. Gene is single and has no other income. What is the character and treatment of the income and losses generated by these activities? a. Is Gene considered a material participant in the tax practice? Yes Is Gene considered a material participant in the apartment leasing operation? No X of the real estate rental activity loss and any remaining loss is b. In the current year, Gene can deduct s suspended as a passive activity loss. Feedback Check My Work Subject to certain exceptions, all rental activities are to be treated as passive activities. A rental activity is defined as any a payments are received principally for the use of tangible (real or personal property. Previous